Fabrinet Reports Record Q2 Non-GAAP EPS of $1.90, Beating Estimates by $0.03 in 2023

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Fabrinet ($NYSE:FN) is a leading provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products. Fabrinet’s services include: optical, electro-mechanical, and electronic design; prototyping; process engineering; production; assembly; and testing of optical, electro-mechanical, and electronic components and assemblies for diversified markets such as industrial, networking, telecommunications, computing, storage, medical, and defense. This was an impressive result and marked the company’s fourth consecutive quarter of positive earnings. The strong performance was driven by broad-based growth across its end markets. In addition to the strong financial performance, Fabrinet has continued to invest in its capabilities and expand its customer base.

The company has invested in new product lines such as semiconductor packaging and 3D printing, as well as increasing its presence in the medical and defense sectors. Fabrinet also announced a new partnership with a large customer that will further expand its reach in the optical communication market. The company’s investments in technology and new product lines are helping it stay ahead of the competition and have enabled it to capitalize on the growing demand for optical communication products. Going forward, Fabrinet looks well positioned to continue its strong performance.

Price History

Shares of FABRINET opened at $133.3 and closed at $132.1, a decrease of 0.8% from the previous day’s closing price of $133.1. Overall, Fabrinet‘s strong performance in Q2 was driven by increased demand across their product portfolio and improved gross margin expansion. The company expects to continue to benefit from its long-term growth initiatives as well as its strong balance sheet and cash flow position. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Fabrinet. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Fabrinet. More…

Key Ratios Snapshot

Some of the financial key ratios for Fabrinet are shown below. More…

Analysis

GoodWhale has conducted a thorough analysis of FABRINET‘s wellbeing and has assigned a Risk Rating to the company. According to their assessment, FABRINET is a medium risk investment when considering its financial and business aspects. GoodWhale has identified areas of potential risk within the business and financial areas of FABRINET, meaning that investors should conduct their own research and analysis before making any decision. FABRINET is a global provider of advanced optical connectivity solutions. Its products are used by companies in the telecoms, data centers, and aerospace sectors. The company provides components, modules, and systems for applications such as high-speed data transmission, optical networking, and fiber-optic sensing. GoodWhale’s Risk Rating for FABRINET is based on an extensive analysis of financial and business aspects. This includes evaluating the company’s profitability, debt-to-equity ratio, liquidity position, cash flow, customer concentration, and more. The assessment also takes into account the quality of the management team and the competitive landscape. GoodWhale’s assessment is available to anyone who registers with the company. Investors should use this rating as a starting point for their own research into FABRINET’s financials and business prospects before deciding whether to invest in the company. More…

Peers

The company services a diverse set of markets, including telecommunications, data communications, aerospace and defense, industrial, life sciences, medical devices, and consumer electronics. Fabrinet has a strong competitive position in its markets, with a comprehensive suite of capabilities and a global footprint. The company’s competitors include Castech Inc, TT Electronics PLC, Gooch & Housego PLC, and others.

– Castech Inc ($SZSE:002222)

Castech Inc is a leading manufacturer of semiconductor products and services. The company has a market cap of 6.84B as of 2022 and a return on equity of 12.34%. The company’s products and services are used in a variety of electronic devices and systems, including computers, cell phones, and automotive electronics.

– TT Electronics PLC ($LSE:TTG)

TT Electronics is a provider of advanced electronics solutions for global markets. The company designs and manufactures electronic components, systems and services for applications in the aerospace, defence, rail, oil and gas, marine, medical, power generation and distribution, and industrial markets.

TT Electronics has a market capitalisation of £232.53 million as of March 2022 and a return on equity of 3.65%. The company designs and manufactures electronic components, systems and services for applications in the aerospace, defence, rail, oil and gas, marine, medical, power generation and distribution, and industrial markets.

– Gooch & Housego PLC ($LSE:GHH)

Gooch & Housego PLC is a leading global provider of advanced photonics solutions. They design, manufacture and supply a wide range of optical components, systems and instrumentation to meet the needs of their customers worldwide. Gooch & Housego has a market cap of 118.69M as of 2022 and a return on equity of 3.16%. The company has a strong focus on innovative photonics solutions and providing excellent customer service.

Summary

Fabrinet reported record non-GAAP earnings per share (EPS) of $1.90 for the second quarter of 2023, beating analyst estimates by $0.03. The strong performance was driven by a combination of increased demand for Fabrinet’s services, higher average selling prices, and cost containment. These factors indicate that Fabrinet is in a good position to continue to grow and deliver value to shareholders.

Furthermore, it has ample cash reserves and is well-positioned to take advantage of strategic acquisitions and partnerships as they become available. Fabrinet is thus a solid investment opportunity for investors who are looking for long-term returns.